Van Oord 2017 Revenue Dips

Van Oord reported slight drop in its revenues for 2017 having realized of EUR 1.53 billion (2016: EUR 1.71 billion) and a net result of EUR 78 million (2016: EUR 90 million).

In particular, the turnover of the group's dredging activities was low from a historical perspective (EUR 923 million, 2016: EUR 1.18 billion). The offshore wind sales amounted to EUR 403 million and remained virtually the same as last year's level (EUR 394 million). Despite the poor market, sales in offshore oil and gas increased to EUR 204 million (2016: EUR 130 million), thanks to a number of large projects in our niche markets.

The net result amounted to EUR 78 million (EUR 90 million in 2016). The decrease was mainly related to a lower level of activity in the company. EBITDA amounted to EUR 290 million in 2017 (2016: EUR 333 million).

The order book remained stable in 2017, at a level of EUR 3.39 billion (2016: EUR 3.27 billion). In 2017, we accepted a total of EUR 1.65 billion in works. The order book is filled with various projects.

Pieter van Oord, CEO commented, "Especially the difficult market conditions in the dredging and oil & gas sector have left a mark on 2017. Work in offshore wind showed a stable picture, and market dynamics in the offshore wind sector offer us many opportunities in the coming years. The energy transition is increasingly taking shape and the construction of offshore wind farms is a growing market in which we have a strong position."

In 2018 Van Oord expects higher turnover than in 2017 due to a high level of activity in the Offshore wind business unit. The activities are late cyclical and the company does not expect any recovery in the dredging market. They see a slight recovery into the offshore oil & gas sector. In 2018 they foresee a high tender volume for all activities. Since they work on large complex tenders, which are socially relevant: new ports, large wind projects, and other extensive energy infrastructure projects.

"After the end of 2017, we have been successful on two new DBFM projects in the Netherlands, Pieter van Oord continued. "In March 2018 Rijkswaterstaat definitively awarded the Afsluitdijk project to the Van Oord-BAM-Rebel consortium. Rijkswaterstaat also announced the intention to award the A16 Rotterdam project. This last DBFM project will be carried out by a consortium with the builders Van Oord-Dura Vermeer-TBI-Besix.

"2018 will be a special year in which we celebrate our 150th anniversary . Founder Govert van Oord started in 1868 as an independent entrepreneur and laid the foundations for the current Van Oord. We celebrate this jubilee year with festive baptisms of our ships and with attention for society and future generations."